THFF First Financial Corp.

Risks

• Geographic concentration of the Corporation’s markets makes our business highly susceptible to local economic conditions and a downturn in local economic conditions may adversely affect our business.
• The Corporation operates in a highly competitive industry and market, and our business will suffer if we are unable to compete effectively.
• Changes in consumer use of banks and changes in consumer spending and savings habits could adversely affect the Corporation’s financial results.
• We are a community bank and our ability to maintain our reputation is critical to the success of our business.
• The Corporation is dependent on certain key management and staff
• Our operational systems and networks are subject to an increasing risk of continually evolving cybersecurity or other technological risks, which could result in a loss of customer business, financial liability, regulatory penalties, damage to our reputation, or the disclosure of confidential information.
• Changes in interest rates could adversely affect the Corporation’s results of operations and financial condition.
• If the Corporation’s actual loan losses exceed our allowance for loan losses, our net income will decrease.
• A lack of liquidity could affect our operations and jeopardize our financial condition.
• We operate in a highly regulated environment and the regulatory framework to which we are subject may adversely affect our results of operations.
• Legislative and regulatory actions taken now or in the future may increase our costs and impact our business, regulatory structure, financial condition, and/or results of operations.
• The Basel III capital rules may require us to retain higher capital levels, impacting our ability to pay dividends, repurchase our stock, or pay discretionary bonuses.
• The Corporation’s accounting estimates and risk management processes rely on analytical and forecasting models, which, if inadequate, may result in a material adverse effect on our business, financial condition, or results of operation.
• The Corporation’s controls and procedures may fail or be circumvented, and the Corporation’s methods of reducing risk exposure may not be effective.
• We rely on external vendors, which could expose the Corporation to additional operational risks.
• The Corporation may foreclose on collateral property and would be subject to the increased costs associated with ownership of real property, resulting in reduced revenues and earnings
• The Corporation’s earnings may be adversely impacted due to environmental liabilities associated with lending activities.
• Uncertainty about the future of the London Inter-Bank Offered Rate (“LIBOR”), and its accepted alternatives, may adversely affect our business.
• Higher FDIC deposit insurance premiums and assessments could adversely affect our financial condition.
• Potential acquisitions may disrupt the Corporation’s business and dilute shareholder value.
• If the Bank is unable to integrate Heritage Bank USA, Inc. (“Heritage”) successfully, our business and earnings may be negatively affected.
• New lines of business or new products and services may subject the Corporation to additional risks.
• Future growth or operating results may require the Corporation to raise additional capital, but that capital may not be available or it may be dilutive.
• The Corporation may become subject to claims and litigation pertaining to intellectual property.
• The value of the Corporation’s goodwill and other intangible assets may decline in the future.
• The Corporation may be adversely affected by the soundness of other financial institutions.
• The Corporation relies on dividends from its subsidiaries for most of its revenue
• The Corporation may not be able to pay dividends in the future in accordance with past practice
• The price of the Corporation’s common stock may be volatile, which may result in losses for investors
• Future capital needs could result in dilution of shareholder investment.
• Anti-takeover laws and certain agreements and charter provisions may adversely affect the value of our common stock.
• An investment in the Corporation’s common stock is not an insured deposit